Have you check the pad, it could be worn or contaminated. How late is late for you about half way before engagement? There's an adj knob/lever just inside of the lever you may be able to dail your preference. Is the problem on both f/r?

If there's air in the system then it just need a good bleed. If this happen right after you get your bike it may not be a problem. If the bike has been sitting for a while it may need sometime to "wake up" for the lack of better word. It's like bedding in the rotor it takes a while and once the pressure is up and ready you are good to go, I hope that's the case.

Yeah, at least half way and more than half way on the rear. The adjustment knob is fully set for early grip. I've looked at the pads and I don't know how new ones should look so hard to tell if they're worn but anyway they seem to be resting on the disc so there is no space between them. That leads me to believe that they should grip instantly? The bike has probably been sitting for 6 months or so....

Post the pic of the pad and the lever engagement. The adjustment can change the engagement point it's how riders dial in their preference. Did you go on the first ride yet? if yes how long was the ride and how often you brake. You may just need to brake repeatedly to wake everything up. I have to do that everytime I change the pad or bleed the system.

The pad look worn on the upper section, it could use a replacement. Get the Formula one not the great deal on eBay 3 for the price of one. I bought that and realized why it was so cheap. That may solve your problem.

It looks like the pads are fine. The top pad looks worn but I think it is just a shadow.
I bet you just need to bleed them. You can make or buy a bleed kit if you don't have one or get a cheap one from ebay for like $15 shipped. The avid kits are supposed to work fine.
Go on youtube to watch someone do it, it will explain a lot.

Actually they were pretty worn, so did solve the problem. However, the power is pretty bad so I will bleed them as well. I noticed the rotors are Avids, 160 back and 185 front. My guess is that is not optimal...

I have a set of K24s. It sounds like it needs a bleed, though maybe you just need to burn in the new pads.

Bleeding can be a little tricky, but doable. If you have never bled a brake before, now may be the time to learn. Get yourself a Formula or Avid kit, follow the directions that Formula gives (check their site out), be thorough (don't cut corners), and be patient.

Do not be concerned that you have Avid rotors. I use Avid, Magura, Formula rotors for whatever brake I have run. The important item is to have the right adapter (need to use a 185mm adapter for that 185mm rotor, not a 180mm adapter).

Great brakes when you get them set up correctly. In the long run, a no-fuss type of brake with lots of power and decent modulation. Check out Formula's internet site. They have instructions and tips.

Please make sure that you visit the US site of the company for bleeding instructions. These are very well written and come with meaningful pics. The translation from the Italian instructions is just crap!